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Best Way to Get Personal Loan with a Low Income or No Salary Slip?

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08 Apr 2019 | 6 min read

How to Get a Personal Loan with a Low Income or No Salary Slip?

We want to tell you about a personal loan app -  On the app, you can apply for a personal loan even without a salary account. An easy loan is available without income documents (bank statements). You need to submit the KYC documents. That's it. Loan amounts are available from Rs 2000 to 15,00,000.

The income of an applicant is one of the most basic criteria considered by lenders for granting a personal loan to a borrower. Naturally, lots of questions related to monthly income or salary come to the mind of a borrower more often than not.

  • Can I get a personal loan at a salary of less than Rs 15000? 
  • Can I get a personal loan at a salary of less than Rs 10000? 
  • How much loan can a salaried person get if the salary is Rs 30,000?
  • Can I get a personal loan without a salary account and bank statement?   
  • How much personal loan can a salaried person get?
  • How to get a personal loan without income proof documents?

Let us answer how to get a personal loan approved even at a salary equal to or less than Rs 15,000. Have a glance at these commercial banks and their eligibility criteria –

Commercial Banks

Income Eligibility Criteria (Minimum)

City Union Bank

 6,500

Canara Bank

 10,000

SBI Xpress Credit Personal Loan

 7,500. For state and government, PSUs selected companies

State Bank of India

 Rs. 10,000 (rural/semi-urban)

HDFC Bank

  • HDFC Bank salary account holder: Rs. 25,000
  • Non-HDFC Bank salary account holder: Rs. 50,000

Axis Bank

 Rs. 15,000

Punjab National Bank

 15,000

 

Axis Bank Personal Loan  

Individuals with a monthly salary of Rs.15,000 or more are eligible for a personal loan from Axis Bank. You should know that to borrow money from Axis Bank, you must be over the age of 21 years. Some of the important aspects of Axis Bank's personal loan are listed below. 

Key Highlights: 

  • Salaried personnel in the public, private, and government sectors can apply for a personal loan from Axis Bank. 
  • To apply for this loan, you only need a few documents. 
  • Loans are approved quickly by the lender. 
  • A balance transfer option is available. 

SBI Xpress Credit Personal Loan  

Individuals with salaries of Rs.5,000 and more can apply for a personal loan from the State Bank of India, which is known as the Xpress Credit Personal Loan. Under this scheme, prospective borrowers can borrow up to Rs.20 lakh. 

Key Highlights: 

  • To be eligible for a loan from SBI under this scheme, the applicant must have a salary account with the bank. 
  • Your EMI to net monthly income ratio should not be more than 50% to be eligible for this loan. 
  • Borrowers can apply for a second loan one year after the first loan is paid off. 

HDFC Bank Personal Loan  

You can get a personal loan from HDFC Bank if you need money for an unexpected expense. Applicants must have a net monthly income of Rs.25,000 in order to be considered for this loan. 

Key Highlights: 

  • HDFC Bank offers a personal loan at a low-interest rate to eligible clients. 
  • Personal loan customers can additionally pay a small fee for Personal Accident Cover and Critical Illness Cover. 
  • You can also get the Sarv Suraksha Pro cover to protect your debt. 
  • Prospective borrowers can take advantage of a balance transfer option. 
  • Applicants must be between the age limit of 21 years and 60 years and have a minimum of two years of work experience. 

Many lenders provide low-salary loans online to individuals in different income categories. If you are one of those potential borrowers having concerns/queries as mentioned above, please go through this blog where we will tell you about ways how you can avail of a low salary personal loan (for salary less than Rs 15000) or even a personal loan for salary less than Rs 10000. We will also tell you about various lenders who provide personal loans at a low salary of around Rs 15000.

Personal loans are popular options for people as they are easier to get. Having said that, let’s understand that, getting it approved can be challenging at times, particularly if you belong to a lower income group (for example, personal loan salary less than Rs 10000 or personal loan salary less than Rs 15000). Among the factors that determine the approval of a personal loan, income is perhaps the most important one as a lender would want to be sure that there will be no risk of defaulting in the future.

Your monthly income provides other valid reasons for a lender to consider before extending a personal loan or even small loans online to you. The lenders know that-

  • The higher your income is, the more will be your ability to borrow
  • They can offer competitive interest rates to you
  • You can be flexible with your loan tenure

There is a little bit of challenge. But, here, you can find out how a personal loan for low-salary professionals is available. Again, if you are a salaried person with a steady flow of income every month, getting a personal loan approved should not be a cause of concern for you at all.  But there is not a standard or a set parameter that decides how much personal loan will be approved on your monthly salary. Before deciding on the loan amount to approve, the lender will do a check on whether you are currently having any other loan and whether you defaulted in the past, among other things.  

The interest rate offered to you and the loan amount approved for you are heavily dependent on your credit score and your credit history. A good credit score helps you get loan salary loans. Even, if you are struggling with personal loan approval, find out how personal loans with a low CIBIL score can be approved. This write-up will help you improve your credit score. 

Documentation

  • Proof of Identity:- Any one of Voters ID /Aadhar Card / PAN Card / Passport / Driving License  
  • Proof of residence:- Any one of Passport/ Utility Bill (maximum three months old) /Leave and License Agreement
  • Salary Slips- Bank statement of three months (of the account where income or salary is credited).
  • Employment certificates:- Employment continuity document of at least 2 years
  • Photographs:- Two photographs (passport size)

Can I get a personal loan at a salary of less than Rs 15000? 

Do you fall into the group of low-income individuals? Are you having difficulty in getting a low-salary personal loan i.e. at a salary less than Rs 15000? Leave your worries behind! There are enough ways by which you can avail of your well-deserved personal loan, even if you need a personal loan for Rs 15000 salary.

It is a known fact that the monthly income of an individual is an important factor for the approval of a personal loan by a lender. We have received queries from many individuals looking for a personal loan salary less than Rs 15000, who think that their low monthly salary is a huge obstacle in the path of their availing a personal loan for Rs 15000 salary. If you are one of them, you can very well have a sigh of relief. Yes, you heard it right! You can get your well-deserved personal loan salary of less than Rs 15000.

Well, we understand the concerns of individuals with low salaries as they fear that their presumably low salary may come in the way of availing a much-needed personal loan for 15000 salaries. You can’t blame lenders too much also as it is quite natural for them to be apprehensive about the loan repayment capacity of these individuals.  But, at the same time, they need to understand that individuals with low salaries can be hit more strongly by cash crunches as they may not be having enough fall-back options. Thankfully many highly-acclaimed lenders in India such as HDFC, SBI, or ICICI have acknowledged the dire needs of such individuals and have come up with personal loan solutions, specially designed for people looking for a personal loan for Rs 15000 salary or even personal loan salary less than 15000.

How much loan can a salaried person get if the salary is Rs 30,000?

If you are a loan seeker, it is quite natural that one question will keep coming to your mind more often than not- ‘how much loan am I entitled to get with my monthly salary?’ Yes, it happens with almost all borrowers. Loans are nothing but a credit facility provided to applicants like you who have a steady income. From many factors that determine the disbursing of a loan, income is the most critical one as it provides a lender an accurate assessment of whether a borrower will be able to repay the loan amount in time or whether there is any risk of default in the future. The lender also knows that the higher your income is, the more will be your ability to borrow.

Therefore, if you are a salaried person with a monthly salary of Rs 30,000, getting a loan should not be an issue for you. But there is not a standard or a set parameter that decides how much personal loan will be approved on your monthly salary. The salary criteria and the maximum loan amount can vary from bank to bank, for different types of loans.  The other eligibility criteria that determine how much personal loan a salaried person can get also vary from lender to lender. For example, there are banks /financial institutions that keep a cap of Rs 25 lakhs as the maximum amount when it comes to a personal loan. Some other lenders provide a personal loan up to 60 times the NMI (Net Monthly Income) of a salaried person. Therefore, if you have an NMI of Rs 30,000, you are eligible to avail of a loan up to Rs 20 Lakhs.  Other financial institutions are prepared to provide you small loans online, even if your salary is on the lower side. You can even get a personal loan salary of less than 15000 or a personal loan salary of less than Rs 10000.

In addition to this, some lenders tend to approve a loan amount, so that the EMIs of the borrower stay within about 50% of his net monthly income (after taking into account his other loan repayments, if any).  For example, let us suppose that you are a salaried person with a monthly salary of Rs 30,000 -but your take-home salary comes down to Rs 20,000, after considering all deductions and existing loan repayments. In such a case, a potential lender would tend to approve a loan amount in a way so that your EMI does not exceed the range of Rs 9,000-Rs 12,000, which is approximately 50% of your monthly income after deductions. Thus, the lenders would like to minimize the threat of a possible default.  Therefore, some lenders are apprehensive to grant you a loan if you apply for a personal loan for Rs 15000 salary or a personal loan salary less than Rs 10000.

A higher credit score will help you to get a loan on favorable terms or if you have a bad credit score then you can improve your credit score and you stand a better chance of getting the loan amount you desire as a good credit history/credit score convey better creditworthiness to the lender. Therefore, you should try to maintain a good credit history/ credit score before you decide to apply for a personal loan for Rs 15000 salary or a personal loan salary less than Rs 10000.

Tips to improve your chances for a Personal Loan

VERIFY YOUR CREDIT SCORE

We sometimes apply for a personal loan without first checking our credit score, or CIBIL score. A bad credit score makes it more difficult to get a personal loan. To avoid being turned down for a loan, you should always check your credit score before applying.

You should expect to have a decent credit score if you have always paid your bills on time and have never missed a payment. Despite timely payments, certain variables, such as a high credit utilization ratio, credit report errors, or becoming a guarantor on another loan, will still affect your credit.

As a result, it is important to review your credit score before applying for a loan, mainly to boost your score if it is poor and to correct any errors.

SELECT AN AMOUNT FOR YOUR LOAN THAT IS REASONABLE.

The lender assesses the applicant's ability to repay the loan by relating the loan amount to the applicant's profits. As a result, applying for a larger loan may result in its termination if the lender determines that you will be unable to repay the loan in the future.

So, before applying for a loan, you should weigh the loan sum as well as the ability to repay it.

CRITERIA FOR LOAN ELIGIBILITY

Every lender has its own set of eligibility requirements for borrowers, but a few criteria are universal, such as the applicant's age, current income stability, and debt-to-income ratio. Many financial institutions have age requirements ranging from 22 to 60 years old, with a minimum income threshold of Rs. 25,000 to apply for a personal loan.

REFUSE TO Send AN APPLICATION TO Several LENDERS.

The CIBIL score is lowered when you apply to several lenders and get denied. Furthermore, lenders may believe you are in desperate need of a loan, and you have already been rejected by previous lenders, lowering your chances of getting the loan approved.

RATIO OF DEBT TO INCOME

Lenders look at your debt-to-income ratio to see how much of your monthly income you're devoting to paying off your debts.

Make sure you don't pay more than 30% of your monthly income in EMIs to get a personal loan approved quickly. Paying an EMI that is greater than 30% of your monthly income may reduce your chances of having the loan approved.

Conclusion:

Before applying for a personal loan, make sure you meet the eligibility requirements and research a reliable lender. Before deciding.

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